keisoku

Annuity Future Value Factor Calculator

Find the annuity future value factor from an interest rate and number of years. Enter your yearly contribution to also estimate how much regular saving will be worth in the future (future value = contribution × factor).

Input

%
yrs
×10k

Enter an amount to also calculate the future value (contribution × factor).

Result

Annuity future value factor (3% · 20 yrs)

26.870374

Annuity future value factor

26.870374

Sinking fund factor (reciprocal)

0.037216

Future value

$16,122,224.69

Saving $600,000.00 each year at 3% for 20 years grows to about $16,122,224.69.

How it works

  • The annuity future value factor is calculated as ((1+r)^n − 1) ÷ r, where r is the interest rate as a decimal and n is the number of years. It represents the accumulated principal plus interest from saving one unit each year.
  • When the rate is 0%, the factor equals n. With no interest, saving the same amount each year simply stacks up n times.
  • Enter a yearly contribution and the future value is found as contribution × annuity future value factor. Example: at 3% over 20 years, the factor is about 26.87, so saving 600,000 per year yields that factor × 600,000.
  • Calculations assume an ordinary annuity with a fixed amount paid at the end of each year, with interest compounded annually. For payments made at the start of each period, the future value is (1+r) times larger.
  • The reciprocal of the annuity future value factor is the sinking fund factor. The sinking fund factor tells you how much to save each year to reach a target amount, found as target × sinking fund factor.
  • Note: results are estimates that ignore taxes, fees, and inflation. They do not guarantee actual investment returns or the yield of any financial product.